unemployment, and advocating fiscal policy as its cure, is largely mythical. Rather he was concerned with exploring the theoretical … idea that an economy co- ordinated by monetary exchange is prone to market failures that create unemployment. The origins …

role of real interest rates in unemployment models, the importance of the trade balance and related constraints in open … economy models and the uniqueness and stability of unemployment equilibria. …

illustrate that the dynamic behavior of unemployment seems to change over the business cycle, with the unemployment rate rising …

unemployment. The economy grew at a 2.5 percent annualized pace in the third quarter, according to the second estimate of real …

—matters for interest rates and unemployment. We formalize this idea by adding an over-the-counter market with collateralized … raises the real interest rate, crowding out private liquidity and increasing unemployment. If unemployment is inefficiently … collateral widens the rate-of-return difference between private and public liquidity, also increasing unemployment. …

change that renders the natural rates of interest and unemployment uncertain. Using a forward-looking quarterly model of the … rules do not require knowledge of the natural rates of interest or unemployment for setting policy and are consequently …